What defines an accountable care organization (ACO)?

An accountable care organization (ACO) is defined by a group of health care providers who coordinate their efforts to improve the quality of patient care while managing costs. This collaboration among various providers—such as hospitals, physicians, and specialists—enables a more integrated approach to health care delivery. The goal is to ensure that patients receive the right care at the right time, enhancing patient outcomes and fostering a focus on preventive care, rather than reactive measures.

By promoting communication and shared responsibility, ACOs aim to reduce unnecessary tests and procedures, which helps to lower overall health care expenses while maintaining or improving the quality of care provided. This model aligns financial incentives with health outcomes, rewarding providers for improved patient health rather than the volume of services delivered.

The other options mischaracterize the nature of ACOs. An independent working group would not be able to provide the coordinated care that ACOs aim for. While cost reduction is certainly a goal, ACOs are not merely a government initiative; they involve various stakeholders across the health care system. Focusing solely on profit maximization is contrary to the ACO's mission, which emphasizes value and quality of care over financial gain alone.